Emerging Markets Valuations Are Cheaper Than in 2009

[theasiareport]

This is a paid article (I think you get 10 free articles by creating an account). Its has all the valuation metrics.

Here are the main points:

Analysis by JPMorgan Asset Management shows that the benchmark MSCI EM index was trading on a price/book ratio of 1.28 as of late August (see the first chart), suggesting that even if a company went bankrupt, investors would get back almost 80 per cent of their money by selling the underlying assets.
 
This ratio is now below the troughs witnessed during the global financial crisis and has only been lower twice in the past 20 years: fleetingly after September 11, 2001 and more tellingly during the 1997-98 Asian financial crises.

JPMAM went on to analyse the returns investors who bought in at similarly low price/book ratios enjoyed over the subsequent 12 months. In every case during the past 20 years they have made money, often as much as 50-60 per cent (see the second chart).

“Emerging markets have only been this cheap 3 per cent of the time since 1989. Now is not the time to become more negative on the asset class,” says Richard Titherington, chief investment officer, emerging markets and Asia Pacific equities, at JPMorgan AM.

 

As the old saying goes... “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”